As it continued to expand its store count, At Home delivered its 19th consecutive quarter of comparable store sales growth as well as its 18th consecutive quarter of over 20% net sales growth.
Net sales in the third quarter ended October 27 increased 25.5% to $267.2 million from $213 million in the previous third quarter, driven by the net addition of 29 stores and a comparable store sales increase of 5.2%.
Net income increased to $11.1 million compared to $2.4 million in the third quarter of fiscal 2018. Earnings per share increased to $0.17 from $0.04 and adjusted EPS increased to $0.18 from $0.07 as compared to the third quarter of fiscal 2018.
The company expanded its store footprint by opening eight net new stores, including one store relocation, in the third quarter. The company ended the quarter with 173 stores in 36 states, which represents a 20.1% increase in store count since the previous third quarter.
Lee Bird, chairman and CEO, At Home, said, “We had an exceptional third quarter exceeding our top and bottom line expectations. Net sales growth of over 25% was fueled by continued strong performance from our new stores and a 5.2% increase in comparable store sales. Alongside our topline performance, we delivered 280 basis points of gross margin expansion and reinvested in store labor hours and advertising, resulting in a 105% increase in operating income and a 61% increase in adjusted operating income. We also made progress on our key priorities aimed at strengthening both the customer experience and our superior value proposition.”
Bird added, “Our fourth quarter comparable store sales outlook reflects a patch of softness early in the quarter before the business rebounded. However, the continued strength of our new and non-comp stores enables us to reiterate both our net sales and adjusted profitability metrics for fiscal 2019 as we look forward to delivering yet another year of industry-leading growth.”